By Jamie Martin
Yara International ASA has agreed to acquire a large ammonia production facility located in Texas City, Texas, as part of its strategy to expand operations and strengthen its global supply chain.
The facility, which is being acquired through Yara North America, is expected to produce about 1.3 million metric tons of ammonia annually when fully operational. The plant is currently undergoing commissioning and is projected to reach stable production levels by the end of 2026.
Company leaders say the acquisition will improve flexibility across Yara's production and distribution network while supporting reliable ammonia supplies for both agricultural and industrial customers. Ammonia is a key ingredient in fertilizer manufacturing and plays an important role in global crop production.
"By bringing this plant into the Yara portfolio, we are strengthening our operational resilience and diversifying our energy costs at a time when supply flexibility matters more than ever,” said Svein Tore Holsether, President and Chief Executive Officer.
He added, “This addition of world-class U.S. production capacity supports our long-term strategy of diversifying our energy exposure, capturing economies of scale, and lowering both fixed costs and capital per tonne. With a century of experience and a proven commitment to safety across our operations, sales, and distribution networks in over 60 countries, Yara will contribute to reliable supply across critical value chains, in the U.S. and beyond."
Yara plans to integrate the facility into its existing ammonia platform, allowing the company to efficiently distribute product to customers and internal operations. The move also strengthens Yara's ability to secure supply during periods of changing market conditions.
A long-term agreement with Air Products will provide hydrogen, nitrogen, and other services required for the facility's operations. This structure is like another successful Yara operation in Texas and is expected to support high levels of efficiency and performance.
The company believes the Texas facility will become a highly competitive asset within its global portfolio. Yara's extensive experience in ammonia production is expected to help improve reliability and increase output over time.
The investment aligns with Yara's broader plans to diversify energy exposure and support future growth opportunities. The company also sees potential for the facility to participate in future low-carbon ammonia initiatives as market conditions evolve.
Photo Credit: gettyimages-darcymaulsby
Categories: National